Understanding Expenses: Flashcard for Students

Front

What are fixed expenses?

Back

Fixed expenses are costs that do not change from month to month, such as rent, insurance, and subscriptions.

Front

What are variable expenses?

Back

Variable expenses are costs that can fluctuate each month, such as groceries, entertainment, and utility bills.

Front

What is a periodic expense?

Back

A periodic expense is a cost that occurs at regular intervals, such as monthly, quarterly, or annually, like car insurance or membership fees.

Front

Calculate the total fixed expenses: Rent $500, Insurance $100, Subscription $50.

Back

Total fixed expenses = $500 + $100 + $50 = $650.

Front

If your annual car insurance premium is $1,200, what is the amount of each semi-annual payment?

Back

Each semi-annual payment = $1,200 / 2 = $600.

Front

Identify a periodic expense from the following: Monthly internet bill, Weekly groceries, Semi-annual car insurance, Daily coffee.

Back

Semi-annual car insurance is a periodic expense.

Front

Identify an example of a periodic expense: Weekly groceries, Monthly phone bill, Annual membership fee, Daily transportation cost.

Back

Annual membership fee is a periodic expense.

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses remain constant, while variable expenses can change based on usage or consumption.

Front

What is the formula to calculate total fixed expenses?

Back

Total fixed expenses = Sum of all fixed costs.

Front

What type of expense are grocery bills classified as?

Back

Grocery bills are classified as variable expenses.